diff --git a/heat/engine/environment.py b/heat/engine/environment.py
index 995e95486b..a2162b9e45 100644
--- a/heat/engine/environment.py
+++ b/heat/engine/environment.py
@@ -218,7 +218,10 @@ class ResourceRegistry(object):
         registry[name] = info
 
     def iterable_by(self, resource_type, resource_name=None):
-        if resource_type.endswith(('.yaml', '.template')):
+        is_templ_type = resource_type.endswith(('.yaml', '.template'))
+        if self.global_registry is not None and is_templ_type:
+            # we only support dynamic resource types in user environments
+            # not the global environment.
             # resource with a Type == a template
             # we dynamically create an entry as it has not been registered.
             if resource_type not in self._registry:
diff --git a/heat/tests/test_provider_template.py b/heat/tests/test_provider_template.py
index 163b7ba37c..122c7ef904 100644
--- a/heat/tests/test_provider_template.py
+++ b/heat/tests/test_provider_template.py
@@ -432,6 +432,8 @@ class ProviderTemplateTest(HeatTestCase):
             {'WordPress_Single_Instance.yaml':
              'WordPress_Single_Instance.yaml', 'resources': {}},
             stack.env.user_env_as_dict()["resource_registry"])
+        self.assertNotIn('WordPress_Single_Instance.yaml',
+                         resources.global_env().registry._registry)
 
     def test_persisted_unregistered_provider_templates(self):
         """